Global stock markets and U.S. futures surged Tuesday after the Federal Reserve promised support to the struggling economy as Congress delayed action on a $2 trillion coronavirus aid package.
Tokyo advanced more than 7 per cent and Frankfurt opened 6 per cent higher. London, Shanghai, Paris and Hong Kong also rose.
On Wall Street, futures for the benchmark S&P 500 index and Dow Jones Industrial Average gained 5 per cent.
Traders were encouraged by the Fed’s promise to buy as many Treasurys and other assets as needed to keep financial markets functioning.
On Monday, Wall Street fell 3 per cent after Congress failed to approve an economic support package. It would send checks to U.S. households and offer support for small businesses and the hard-hit travel industry, but Democrats say it favors companies too heavily at the expense of workers and public health.
“Asian investors like what they see from an all-in Fed which is being viewed in a very impressive light for both Main and Wall Street even as the U.S. congress dithers,” said Stephen Innes of AxiCorp. in a report.
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